High-profile underquoting cases have been a big factor changing the way agents quote.

Photo: Josh Robenstone

Underquoting is when a salesperson advertises a price for a property that is less than the vendor is willing to consider - in order to encourage more buyers to look at the property.

The property watchdog has probed 340 recent property sales for signs of underquoting.

Six major investigations are now underway. The government has not identified the agencies being investigated but said they included franchisees from larger real estate agencies and smaller private operations.

Advertisement

The watchdog has also issued statutory notices demanding paperwork proving no unethical behaviour has occurred.

"We are halfway through these inspections and the results will be used to inform any changes that are needed," she said, adding the inspections may also lead to further prosecutions.

While the practice of underquoting can be "extremely difficult" to prove, Ms Garrett said current probes were closely monitoring the auction process from start to finish.

The watchdog is sifting through advertisements, emails and documents in a bid to identify agents that have underquoted.

"It is always going to be a difficult thing to prove but we have to do better than we've done," Ms Garrett said.

Consumer Affairs Victoria received 120 complaints of alleged underquoting or price misrepresentation in the 2014-15 financial year. Complaints have steadily risen since 2011-12, when just 20 complaints were registered, prompting the government to clampdown on the practice.

"We know this is a problem and it can be heartbreaking for potential buyers who are lured in by these tactics," Ms Garrett said.